GM India plans to invest $300 million over the next two years to launch six new products including a compact car, sedan, MUVs, van and pick-ups. Mahindra & Mahindra will sign an agreement to acquire Korean automaker Ssangyong Motors for around Rs. 2,000 crore. Yamaha plans to launch its 1000cc FZ1 superbike in India in December priced between Rs. 8-9 lakh to compete with the Honda CB1000R. BMW will expand production capacity at its Chennai plant to 8,000 units by early 2011 from 3,000 currently as part of a Rs. 180 crore investment plan in India. Nissan will unveil

1. THE ECONOMIC TIMES NEWS
22ND NOV- 26TH NOV

2. GM INDIA TO INVEST $300 M IN TWO
YEARS
 GM India has drawn up plans to invest $300 million
in the next two years for launching six new products
 The new products would comprise a compact car, a
sedan, multi-utility vehicles, van and pick-ups.
 Mr Balendran said its recently commissioned engine
plant at Talegaon near Pune would manufacture 1.60
lakh engines per year for various models in the petrol
and diesel categories.
 The plant's capacity could be expanded by another
1.40 lakh units.

3. M&M TO INK FINAL PACT FOR
SSANGYONG BUY TODAY
 MAHINDRA & Mahindra (M&M) will sign the final agreement for its acquisition of
South Korean sports utility vehicle (SUV) maker Ssangyong Motors on Tuesday.
 The Mumbai-based utility vehicle maker may pay around Rs 2,000 crore to take over the
bankrupt company. The company's automotive division head Pawan Goenka and chief
investment officer VS Parthasarathy are in Seoul to sign the share purchase agreement
drafted by South Korea's largest legal firm, Bae Kim & Lee
 Ssangyong had chosen M&M as the preferred bidder in August this year after making
the highest bid. The bid is likely to be financed through a combination of debt and
internal accruals.
 The acquisition will help Mahindras to build a global footprint as the Korean maker of
the Rexton and Kyron SUVs also exports to Russia, Europe, China, and the Middle East.
 "Ssangyong fits into M&M's global aspirations of becoming a leading SUV player.
 M&M has already bought electric carmaker Reva Car Company and Renault's stake in
their JV, Mahindra Renault.

4. YAMAHA FZ1 COMING IN DEC
 India Yamaha Motors is now planning to introduce Yamaha FZ1 in India in a bid to
corner the high-margin power bike market. The super bike will be launched in December
and will be priced between Rs 8-9 lakh.
 Yamaha FZ1, with its 1000cc and four cylinders, would compete with the recently
launched Honda CB1000R. It is pitted in the same category as the Suzuki Bandit and
Kawasaki Z1000S in the international market.
 Japanese automakers such as Honda, Yamaha and Kawasaki are top players in
superbikes space along with Ducati and BMW. Most of them are now present in India.
 The bike is priced cheaper than the Honda CB1000R, which is the cheapest imported
superbike currently sold. The bike will be imported as CBU from Australia or Japan.
 This will help Yamaha to price the FZ1 competitively. Yamaha, which sells super bikes
in the range of Rs 14-24 lakh, plans to sell over 80-100 super bikes in India in 2010.
 The company is following top to bottom strategy to conenct to the youth,” said a senior
official from India Yamaha. Besides, the company is firming up plans to enhance
capacity at its existing plant in Uttar Pradesh and Haryana.
 Currently it has the capacity to manufacture 3.5 lakh bikes, this can be ramped up to 8
lakhs.

5. BMW TO EXPAND CAPACITY
AT CHENNAI PLANT
 German luxury car maker BMW Group will expand its capacity for the second
time in less than a year as demand for luxury cars are rising, propelled by
increasing purchasing power.
 BMW Group plans to ramp up its capacity to 8,000 units per year at its Chennai
plant by early 2011 from the current 3000 units.
 The expansion is part of the proposed . 180 crore investment plan in India by
2012. "Buoyant demand for luxury cars has forced BMW to devise strategy on
new launches and a combination of locally assembled and imported car and
SUV's would be launched in India in 2011-12.
 Major part of the capacity expansion would be utilised for rolling out its new
compact sport utility vehicle the X1 that would be launched around in January
next year.
 The luxury car market grew 40% to 9959 units in April-October period this
year.
 BMW, that hit the Indian market in 2006, looks to sell more than 5,000 cars in
2010 calendar year.

6. NISSAN TO BRING DIESEL VARIANT OF
MICRA IN INDIA
 Japanese automobile joint venture Nissan Motor India will
unveil the diesel variant of its Micra compact hatchback car in
December second week.
 “India will be the first country to have the 1.5-litre K9K diesel
version of Micra hatchback with intelligent key, immobiliser, a
push-button engine start-stop system and electric foldable
mirror.
 Nissan Indian rolled out the petrol variant of Micra in July and
sold about 5,000 units during the last four-five months.
 The success of the petrol-powered Micra in the Indian market
has given the company confidence to introduce the diesel
variant within six months of its launch
 The Micra diesel will be priced . 560,000-620,000.